Electronic-Cigarette Maker FIN Hires BB&T to Review Bid

May 1 (Bloomberg) -- FIN Branding Group LLC, a closely held
maker of electronic cigarettes, has retained BB&T Corp. to
evaluate bids as private-equity firms and tobacco companies look
to enter the market for the smoking alternative.

BB&T is receiving a “growing and steady” number of
inquiries, FIN Chief Executive Officer Elliot Maisel, 58, said
yesterday by telephone. Possible buyers include tobacco and drug
companies as well as private-equity firms, he said, declining to
identify companies that have expressed interest.

Consumption of electronic cigarettes -- battery-powered,
nicotine-infused tubes designed to duplicate the puffing
experience without smoke -- may surpass demand for traditional
cigarettes in the next decade, according to Bonnie Herzog, an
analyst at Wells Fargo & Co. in New York. The devices appeal to
consumers concerned that smoking is unhealthy and aren’t allowed
to smoke in offices, restaurants and other public places.

Potential investors “see the financial opportunity,” said
Maisel, who started Atlanta-based FIN in 2011 and projects
revenue of almost $70 million this year. He hired Winston-Salem,
North Carolina-based BB&T late last year and said he’s open to
joint venture or takeover offers from strategic buyers such as
Reynolds American Inc., Altria Group Inc., international tobacco
companies or large pharmaceutical companies.

David Sylvia, an Altria spokesman, and Bryan Hatchell, a
spokesman for Winston-Salem, North Carolina-based Reynolds,
declined to comment in e-mails on whether their companies would
be interested in talking to FIN.

Maisel is competing with Lorillard Inc.’s blu eCigs and
closely held producers such as NJOY and LOGIC Technology.

LOGIC Technology

LOGIC Technology, based in Livingston, New Jersey, has
talked to many tobacco companies and financial firms interested
in a possible combination, Chief Executive Officer Eli Alelov
said in a telephone interview. He declined to identify the
companies with which he’s talked.

“Investment bankers are trying to get into the space,”
said Alelov, 45. He said he’s “interested in what other
business partners could put on the table. I’m always open to
suggestions.”

Altria, the largest seller of tobacco in the U.S., said
last week it plans to introduce an e-cigarette in an undisclosed
market in the second half of 2013. Chief Executive Officer
Martin Barrington, speaking on a conference call with analysts,
declined to comment on whether Altria was considering a
takeover, saying the Richmond, Virginia-based company doesn’t
speculate on potential acquisitions.